Iomega issues revenue warning

Iomega, which makes Zip storage drives, said Monday that its second-quarter revenue may be in the range of $180 million to $190 million, down from $304 million in the second quarter of last year. The company now expects to report a pretax loss for the quarter in the range of $41 million to $62 million, including charges of $33 million to $50 million.

"The revenue shortfall in the second quarter is due mainly to lower Zip and Jaz revenue," CFO Philip Husby said in a statement. "Sales of HipZip, FotoShow and CD-RW have also been below our expectations." The company will announce second-quarter results July 19.